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Tens of thousands of Hoosiers to receive tax bills this week

NOTE: The Indiana Department of Revenue is issuing this correction to the news release it distributed yesterday regarding the more than 80,000 tax bills that will be mailed today.

“We strongly encourage anyone who owes to pay the bill in full, if he or she is able to do so at this time, to avoid additional accrued interest,” said Eckart.

Bills that are paid after the filing deadline are automatically by law charged a 10 percent penalty and market-rate interest. While paying the bill in full at this time does not remove the penalty or interest to date, paying the bill in full now does enable the taxpayer to avoid continued future accrued interest.

CORRECTED NEWS RELEASE.

Indianapolis (July 9, 2010) – The Indiana Department of Revenue will begin mailing more than 80,000 tax bills to individuals throughout Indiana tomorrow. These tax bills are for Hoosiers who owe individual income tax from the past filing season, but have not yet paid their tax bills to date.

“This is customary for us to issue the tax bills this time of year,” said Department of Revenue Commissioner John Eckart. The revenue agency says the bills being issued this month total more than $59.4 million.

Bills that are not paid by the due date could convert into tax warrants and be turned over to the county sheriff or a professional collection agency, as is allowed by law. Both county sheriffs and professional collection agencies have the option to levy bank accounts, garnish wages or even auction off personal property in an effort to collect on unpaid tax debts that have converted to warrants.

“However, about 98 percent of Hoosier taxpayers pay their bills,” said Eckart. “We look for most of those individuals who receive their bills this month to pay their bills in full or work out a payment arrangement.”

NEW PAYMENT PLAN TOOL ONLINE Additionally, the Department of Revenue will launch a new online tool on July 12 that will allow taxpayers to pay their bills in full or most taxpayers to set up a payment arrangement on their own.

“Taxpayers who owe $100 or more can use the online tool,” said Eckart. However, taxpayers who use the online tool must pay 10 percent down toward their total tax debt. In addition, they will still incur the 10 percent penalty and will accrue interest until the tax debt is paid in full.

“We strongly encourage anyone who owes to pay the bill in full, if he or she is able to do so at this time, to avoid additional accrued interest,” said Eckart.

Payment plans can be set for 12- and 24-month increments, depending on the amount of the tax bill. Hoosiers wishing to take advantage of this option can do so at http://www.intaxpay.in.gov/

Hoosiers who owe less than $100 may call the Department of Revenue at 317.232.2165 to see if they qualify for a special-case payment arrangement for a duration of three months.

The Department of Revenue is reallocating staff to accommodate customer calls.